LBW INSIGHTS

Cash and debt management can be an ally or detriment to a person’s financial well-being. In today’s information age, personal finance tools are plentiful. However, many are unknown, misunderstood, or aren’t applicable to one’s lifestyle.

A constant theme we address with clients is a desire or need for improved cash flow and/or liquidity. And sometimes, little do they know, a resource may lie right beneath their feet…literally.​A Home Equity Line of Credit (a.k.a. HELOC) may be a solution to add flexibility to your cash management practices. HELOCs have been on the financial scene since the 1990s. On March 31, 2016 Forbes wrote an article titled “Your Neighbor Got a HELOC, Should You?”[1] and stated “Over 37 million borrowers have an average of $112,000 equity available to tap in their homes…”. For some home owners, putting this equity to use could provide multiple benefits. Let’s explore a few and don’t worry, it’s not a one-sided conversation – we will examine the disadvantages as well.